The San Jose, CA-based networking giant reported Q1 earnings per share (EPS) of $0.61, which was $0.01 better than the Wall Street consensus estimate of $0.60.

Revenues fell 1.7% from last year to $12.14 billion, beating analysts’ view for $12.11 billion. Cisco noted that product revenue was down 3%, while service revenue was up 1%.

Looking ahead, Cisco forecast Q2 EPS of $0.58 to $0.60, which is in-line with Wall Street’s outlook of $0.58. It also sees Q2 revenues gaining 1% to 3% to about $11.70 to $11.93 billion. Analysts are looking for revenues of $11.69 billion in the second quarter.

The company commented via press release:

“Our results in Q1 demonstrate the continued progress we’re making on our strategy,” said Chuck Robbins, CEO of Cisco. “The network has never been more critical to business success. Cisco is delivering more insights and intelligence as we help our customers build highly secure, intelligent platforms for digital business.”

Cisco shares rose more than 3% in after-hours trading Wednesday following the report. Year-to-date, CSCO has gained 16.87%, versus a 16.37% rise in the benchmark S&P 500 index during the same period.